ABSTRACT
T H E growing difficulties encountered by our exports of capital goods make it natural that more attention should be given to the problem of strengthening or prolonging our export credits. The suggestion of an export loan or the hopes one can hear that the World Bank may soon grant a credit are an eloquent expression of such thoughts. At the same time it must be remembered that export credits, if pursued alone, could easily lead to dangers. We cannot neglect capital exports, and for this very reason the speedy reform of our capital markets is desirable. Yet capital exports should not be over-stressed; if, for instance, we were to extend credits of up to ten years, we would be competing with other countries at a point where we are particularly weak and vulnerable. Countries like Switzerland or the United States can always underbid our interest rates and overbid our credit terms. This would be particularly true if American industry were to concentrate still further on international investment. Where the granting of credit is concerned, our chief competitors undoubtedly hold strong cards.
